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A comment on European Union plans to tax tech giants on local revenue. Parent comment
Because of how VAT works we have a lot of companies in the EU that lives by essentially reselling stuff. These chains can be long.
If you apply revenue taxing to low profit margin businesses with high turn-over and long supply chains we'll see some negative results.
It's a decent way to hit tech giants, because a substantial part of the revenue is profit. But the unintended victims might be numerous on this one.
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Because of how VAT works we have a lot of companies in the EU that lives by essentially reselling stuff. These chains can be long.
If you apply revenue taxing to low profit margin businesses with high turn-over and long supply chains we'll see some negative results.
It's a decent way to hit tech giants, because a substantial part of the revenue is profit. But the unintended victims might be numerous on this one.